Bengaluru Real Estate: e-Khata Becomes Mandatory from July 1, 2025
Bengaluru's real estate market is undergoing a significant transformation with the mandatory implementation of e-Khata for all BBMP properties from July 1, 2025. The digital property record system aims to enhance transparency, digitization, and tax compliance.
BengaluruEkhataBbmpReal EstateProperty TaxReal Estate NewsJul 24, 2025
An e-Khata is a formal digital property document used in Bengaluru that captures details about property ownership, dimensions, boundaries, and tax information. It is issued by the Bruhat Bengaluru Mahanagara Palike (BBMP), the civic authority. An e-Khata acts as a verifiable proof of ownership before the government and is essential for paying property taxes, applying for building construction approvals, or selling property. Each e-Khata contains a unique Property Identification Number (PID) to ensure transparency and traceability in reports and payments.
The e-Khata is part of a government-led initiative by BBMP to digitize records and eradicate property fraud. It aims to eliminate illegal and unplanned construction and ensure that property owners pay taxes according to property valuation. Recently, BBMP has mandated that an e-Khata must be procured for all properties under its jurisdiction starting July 1, 2025. Over 5.3 lakh e-Khatas have already been issued to properties, and tax audits have revealed massive underreporting.
More than 5.3 lakh properties have already been issued final e-Khatas, while more than 5.5 lakh are finalized. The goal is to cover 25 lakh properties within the BBMP area. From July 2025, an e-Khata or EPID (Electronic Property Identification) will be mandatory for all online submissions of building plans. Audits have uncovered large-scale under-reporting of built-up space and mis-declaration of commercial properties as residential, involving almost 5 lakh properties. The BBMP has already recovered around Rs. 500 crores and expects to recover another Rs. 500-1,000 crores through ongoing processes.
However, the system faces several challenges. Server delays and authentication roadblocks persist, resulting in e-Khata issuance delays. Approximately 20,000 new Khata applications are still pending, while over 5 lakh have been generated and downloaded. Close to 20,000 applications are pending due to BBMP employees being redeployed for other responsibilities. New BBMP zones are missing files, and residents who don’t have a Khata but pay taxes now have to reapply. While e-Khata has managed to reduce fraud, it has also resulted in tax notices and audit pressure, penalizing some property owners who are not ready for reassessment.
The wider impact on Bengaluru’s real estate is significant. BBMP has already yielded Rs. 2,966 crore in FY2025-26 and hopes to touch Rs. 6,256 crore. The e-Khata audit is expected to add Rs. 1,000 crore to this. The e-Khata digital IDs and compulsory linkage aim to minimize compliance default, render properties more traceable, and increase long-term market value. The government is considering bringing B-Khata properties registered before September 2024 into A-Khata status, releasing mortgages, and formal transferability.
Despite the benefits, challenges remain. Technical glitches and manpower shortages result in numerous properties, particularly newer BBMP areas, not being registered. Increased scrutiny might disproportionately hit small investors with lenient compliance. Most BBMP systems (server deployment, portal support, application tracking) cannot yet meet the recent surge. There is also inconsistency in wards on awareness, MELAs, and portal reach.
In conclusion, Bengaluru’s e-Khata system represents a significant overhaul in property governance, linked to transparency, digitization, and tax responsibility. It has unearthed crores of hidden liabilities, sealed revenue losses, and compromised legitimacy in the market. However, its success depends on clearing technical backlogs, enforcing equity, and providing streamlined digital services. If BBMP can iron out the bugs and speed up issuance, e-Khata could go a long way towards formalizing Bengaluru’s real estate, boosting investor confidence, facilitating smooth transactions, and strengthening civic finance. The current stage is pivotal: a trial of whether digital enforcement can maintain efficiency without punishing honest homeowners.
Frequently Asked Questions
What is an e-Khata and why is it important?
An e-Khata is a digital property document issued by the Bruhat Bengaluru Mahanagara Palike (BBMP) that captures details about property ownership, dimensions, boundaries, and tax information. It is important as it acts as verifiable proof of ownership, is essential for paying property taxes, applying for building construction approvals, and selling property.
When does the e-Khata become mandatory in Bengaluru?
The e-Khata becomes mandatory for all BBMP properties in Bengaluru from July 1, 2025.
How many properties have been issued e-Khata so far?
Over 5.3 lakh properties have been issued final e-Khatas, with more than 5.5 lakh finalized.
What are the main challenges in implementing the e-Khata system?
The main challenges include server delays, authentication roadblocks, technical glitches, manpower shortages, and inconsistencies in wards on awareness and portal reach.
What is the expected impact of e-Khata on Bengaluru's real estate market?
The e-Khata system is expected to enhance transparency, digitization, and tax compliance, leading to increased long-term market value, revenue maximization, and formalization of the real estate market. However, it also faces challenges such as technical backlogs and increased scrutiny that may affect small investors.
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